Today’s renaissance in the music industry, driven in large part by the continued success of paid streaming services, is leading to a surge in transaction activity across sectors, explains Aaron Siegel of Goldman Sachs Investment Banking. “Investors have caught on to the growth and recovery and the value of these businesses,” explains Siegel, who attributes the pickup in transaction activity to four factors, such as paid streaming subscription services, an uptick in smart speaker devices and the opening up of new markets, such as China and India. “China today represents a low single-digit percentage of global music revenues, but represents 20 to 30 percent of global film box office and global video game revenues,” Siegel says. “There is enormous upside for the music industry as China continues to grow.”

The renaissance in music is playing out through transaction activity across the sector and investors have caught on to the growth and recovery and the value of these businesses.